Likes
Chief market strategist at CMC Markets, Michael McCarthy, likes almond and nut producer Select Harvests (SHV) this week. He says it is well placed to take advantage of any global trade disruptions.
“There are opportunities for improved margins and increased market share. Any increase in prices is likely to fall straight through to the bottom line,” he says.
Our chartist Gary Stone of Share Wealth Systems likes Macquarie Group (MQG).
“It is approaching all time highs, having established a recent support zone around the $97-100 level. This level also coincides with the pre-GFC highs in May 2007.”
Gary joins Plato Investment Management’s managing director Don Hamson in liking this stock. It was Don’s Professional Pick [1] last week.
This is what Don said he liked about it.
“It’s a very dynamic company and it’s certainly changed its spots a little bit. It has always been known for its infrastructure investment but post GFC over a third of its profit comes from funds management. This was acquired at pretty cheap multiples post GFC and now a third of its revenue is annuity-based long-term revenue.”
Dislikes
Michael doesn’t like James Hardie this week (JHX).
“Its good prospects mean James Hardie is trading near all-time highs, and in my view, is priced for perfection. Tariffs and trade wars demand more caution, and a 20% share price sell down cannot be ruled out,” he says.
Meanwhile Gary doesn’t like QBE Insurance Group (QBE).
Here’s his chartist view.
“QBE was a stellar performer from 2001 to September 2007. Since then the stock has continuously formed lower and lower peaks. Lower peaks are formed because of excess supply in the market. Since finding support in the $9.20 -10.00 zone in 2012, the stock has had numerous attempts to resurrect an upward trend. On each occasion it has failed and fallen back to this longer-term support zone. The fall from its 2007 highs to the current support zone represents a retracement in excess of 80% of its 2001-2007 move.
“A break below this support zone opens up a possible fall to $8.00.”
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.